The Chennai based pharmaceutical firm, Orchid Pharma Ltd. is in trouble as the National Company Law Tribunal (NCLT) has issued an order to appoint an interim Resolution Professional to take charge of the management of the company. The insolvency proceedings have been initiated against the company.
Orchid Pharma may appeal against the insolvency proceedings that have been initiated against it. The petition has been filed by one of its lenders, Lakshmi Vilas Bank and it was accepted by the National Company Law Tribunal.
According to the petition files, Orchid Pharma has taken a loan of Rs 50 crore from Lakshmi Vilas Bank, backed by real-estate assets, that it failed to repay according to the court orders. Now, Orchid Pharma is exploring the suitable legal recourse, including an appeal before the NCLT as said in a stock exchange filing.
Orchid Pharma was once known as a leader in Active Pharmaceutical ingredients (API) manufacturing and injectables. It has been facing a financial crisis with various lender and investors. These investors and lenders have started approaching several legal forums for solving such issues.